The Impact Of Technology On Financial Accounting - Research Paper Example

Accounting profession has encountered a drastic change because of the technological advancements over the past few years. Initially, a lot of paperwork was involved in the accounting process, but gradually, with the advent of technology…

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It has been observed that, while, on one hand, technology proves to be an asset for a business organization, it leads to the increase in liability for the accountants. Some of the technological tools like manufacturing of products through computer integrated systems, internet, expert systems, image processing etc. have a positive impact on accounting by facilitating collection, recording, and communication of accurate information about the various business transactions in a timely manner. However, technology has a negative impact on accounting, too. With technological advancements, the risk of losing confidentiality and accountability of the financial accountants has increased. Technology has paved the way towards creating more opportunities for different fraudulent activities in financial and management accounting. Furthermore, there are some impacts of technology on accounting, which cannot be termed either as positive or as negative ones. The pattern of hiring in different organizations has changed considerably, and the training and educational pattern of accountants have also changed because of the technological impact on this sphere. ... often we find that technological advancement has proved to be an asset for a business concern, but at the same time it has added to the liability of the accountants of the organization. As an instance, correct information is provided on a timely basis, but only at the cost of confidentiality. A few of the technological impacts on accounting are only changes in simple terms and can be termed neither as positive nor as negative. Hence, in a nutshell, technological advancements have neutral, positive, and negative impacts on accounting, but each of these impacts calls for the accounting profession to be in conformity with the changes. Positive Impacts of Technology The advent of various types of tools because of the technological advancement is quite obvious. It is one of the positive impacts of technology on accounting. Some of these tools are manufacturing process using computer-integrated system, the internet, communications technology, image processing, and the experts systems. All these are examples of few tools out of many, which have been designed to facilitate presentation of accurate information in a timely and detailed manner. Manufacturing processes in organizations using computer integrated system had an impounding effect on the cost accountants in the financial world. With the manufacturing process being automated, information is collected by the computers and reported instantaneously. This gives rise to a system of operational information which is characterized by the integration between manufacturing and other organizational processes like accounting and marketing. Activity-based costing systems are the results of this type of integration, which has a significant impact on cost accounting. Overheads are efficiently allocated by the accountants using this
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...?FinancialAccounting What is a manufacturing account? Select one: A) A manufacturing account shows the cost of goods sold in a manufacturing business. B) A manufacturing account is an account that serves to calculate the cost of finished goods produced in a manufacturing business. C) A manufacturing account is the personal account of a manufacturing business in the payables ledger. D) A manufacturing account serves to calculate the direct manufacturing costs during the year, the amount of which is then transferred to the trading account. Answer: Option B (A manufacturing account is an account that serves to calculate the cost of finished goods produced in a manufacturing business). Though option D is also the correct answer... be the...

...? FINANCIALACCOUNTING ESSAY Table of Contents Table of Contents 2 Introduction 3 Assets 3 Use of Technology and Revenue Generation 4 Asset Valuation5 Source of Funds 6 Conclusion 7 References 8 Introduction Ford Motor Company is one of the leading automobile manufacturing companies of the world which was founded by Henry Ford in the year 1909 (Yahoo Finance, 2012). It is headquartered at Dearborn, Michigan, USA. The company has remained under family ownership ever since (Bender, Slade, and Thorpe, 2009, p. 4). Ford Motor conducts its business in two different business segments namely, automotives and financial services sector. This report entails about the assets...

...Company to the true picture of the company’s transactions for the five years. The total revenue will read less the exaggerated amount. The false amount is ?3 million for the sale of laptops, ?25,000 involving Witney Ltd, and ?960000 involving PC4U Ltd. The amounts add up to ?3985000. This will now match the analysts’ forecasts for the company. According to the analyst, the company has expected revenue of ?4000 million and operating profit of ?50 million. The finalizing financial statement for the year ended 31 March, which is false following creative accounting and earning management will change to the actual figure. The cause of the irregularity is motivated by the remuneration package of the board of...

...Task: Introduction This assignment presents the following issues: when to recognize revenues as d in the IAS 18; the application of the IAS 18 to the case of the IBI Ryan PLC; and a discussion of the meaning of creative accounting and earnings management, in relation to IBI Ryan’s case. Revenue recognition Revenue is “the gross inflow of economic benefits during the period arising in the course of the ordinary activities of an entity when those inflows result in increases in equity, other than increases relating to contributions from equity participants.” An income can be described as a gross inflow of financial benefits, less cost of sales or /and other expenditures such as operating costs and tax...

...FINANCIALACCOUNTING TESCO TESCO is a well diversified company working in many different ventures; it has over the years created a great deal of value in the eyes of their customers.
“Tesco operates 923 stores and employs 240,000 people, giving us access to a population of 260 million across our nine markets. Over the past five years, we have expanded from our traditional UK supermarket base into new countries, products and services, including a major non-food business, personal finance and internet shopping. The increasing scale and internationalization of our sales and purchasing operations makes a significant contribution to our efficiency and profitability, as we progress towards our long-term goal...

...to adapt to these changes. Accounting information system (AIS) is the new way of preparing and analyzing financial statements in relation to technology advancement (Orwel, n.d.). This newly acquired system does not only end up to the preparation but also it extends up to the auditing process.
The aim of this paper is to investigate the impact of accounting information system (AIS) on the audit process. It is important to know how AIS is affecting the audit process and on the work of the auditors and accountants. The focus is to give an overview, objectives and motivations, and some proposals of the implementation.
Overview
According...

...can be paid of whenever they are due.
The profitability ratios are used to gauge the overall profitability of a company relative to its level of sales. The operating profit margin of the company registered an increase from 27.47% in 2010 to 31.98% in 2012. The operating profit increased on account of considerable decrease in the unusual expenses of the company. This shows that the overall operational efficiency of the company has not improved and the increase in operating margin is the result of a decrease in unusual expenses of the company. Profit margin of the company witnessed a considerable increase from 11.09% in 2010 to 18.22% in 2012. The increase in operating profits of the company translated into better net...

... is important and might appear sound, it should not be excessive as it damages the nation’s spirit of competitive innovation (Unerman &O’Dwyer 2004). Excessive regulation constrains innovation and business practices; hence, regulation of financial reporting should be minimised. It is important to understand that for a nation to be positively impacted by such standards, then, rules ought to start with solid corporate governance. It is the duty of the shareholders as well as the members of the board to examine carefully and ensure that their firms are led in the right path to realise their goals (Whittington 2006). Encouraging accountability, transparency, and stability will help in enhancing long term growth, making it possible... standards...

...FinancialAccounting Task Table of Contents Table of Contents 2 Question 3 Question 2 3 Question 3 4 List of References 5 Appendix 1: Cash budget for the 12-month period of Year 0 6
Appendix 2: Forecast profit and Loss account for year Y+1 6
Appendix 3: The cash budget for Y+1 6
Appendix 4: The budgeted Profit and Loss account for the Year Y+2 7
Question 1
While preparing the cash budget, the cost of sales has been left out since it is not considered as an expense. For the same reasons, depreciation has also been left out. In addition, the quarterly payment of electricity cost and the reduction of the electricity by £ 1,000 every month have been factored in. See appendix...

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